Financial Analysis of Enterprises in Pharmaceutical Industry Based on the Harvard Analytical Framework —— Take TongRenTang, Guangzhou Baiyunshan, Yunnan Baiyao as Example

Under the pressure of aging population and impact of COVID-19, the importance of pharmaceutical industry cannot be neglected. This passage will utilize Harvard Analytical Framework to study the financial situation and development opportunities of three old public brands with analyzing information from their annual reports and East Money. Firstly, this passage will use PEST model to analyze the industrial advantages and disadvantages from four aspects, Politics, Economy, Society and Technology. Then this passage will focalize on specific analysis of companies, with accounting analysis and financial analysis. Compared with others, the pharmaceutical industry in China has little external interference. Generally, enterprises listed are promising and competitive. Despite a few adverse events, they all have good solvency and profitability. It will be the foundation of R&D. It is worth noting that with the support of government policies, the R&D of innovative drugs will be a crucial point in this thriving industry. This passage can be a reference for investors and managers of enterprises.